We recently published a list of 10 Must-Watch AI Stocks Dominating Headlines. In this article we are going to look at where Alphabet Inc. (NASDAQ:GOOGL) stands against other must-watch AI stocks dominating headlines.
The artificial intelligence story continues to grow more compelling with each passing day. In the latest news, a top executive at Russia’s biggest bank told Reuters that Sberbank is planning to collaborate with Chinese researchers on joint AI projects. The emergence of DeepSeek has already sparked a rout in the artificial intelligence world owing to its acclaimed cheap and efficient AI models. Ever since its emergence, the race towards AI supremacy has taken on a new turn.
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Russia and China have reportedly been sharing a “no limits” strategic partnership. They have talked about cooperation in AI but nothing ever came to public knowledge before this. Sberbank, a Russian banking and financial services company headed by CEO German Gref, has since transformed itself from a former state savings bank into one of the country’s leading players in artificial intelligence. The company released its GigaChat model in 2023.
“Sberbank has many scientists. Through them, we plan to conduct joint research projects with researchers from China”.
-Sberbank First Deputy CEO Alexander Vedyakhin told Reuters.
Vedyakhin did not specify who the bank plans to collaborate with, in China. Regardless, a potential partnership between Russia and China over the development of AI is in the works and will be seen as a major threat to the West. This is particularly for the US which is doing everything in its power to acclaim AI supremacy. Putin has directed Sberbank to build cooperation with China and other BRICS nations in AI to encounter U.S. dominance. Similar to China, the country is currently struggling to develop domestic computing capacity as a result of sanctions restricting imports of innovations from the West.
Discussing DeepSeek, Vedyakhin has noted that since the launch of its models, Sberbank has compared them to GigaChat MAX, its most advanced model. The comparison has led them to the conclusion that the Chinese rival was superior in scientific tasks, while GigaChat was on par or better in banking.
“DeepSeek has proven that even with reduced capabilities, it is possible to achieve quality on par with American models. This raises questions about the necessity of extreme investments when there are engineering innovations”.
-Vedyakhin.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A user’s hands typing a search query into a Google Search box, emphasizing the company’s search capabilities.
Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 202
Alphabet Inc. (NASDAQ:GOOG) is an American multinational technology conglomerate holding company wholly owning the internet giant Google, amongst other businesses. On February 5th, DBS analyst Sachin Mittal maintained their bullish stance on the stock, giving a “Buy” rating. Mittal’s buy rating stems from the company’s strong performance in its cloud and services segments, and its advances in AI technologies. The Google platform has demonstrated significant growth potential, and margins are expected to improve further, especially compared to rivals like AWS and Azure. The firm is optimistic that integrating generative AI into Alphabet’s search engine will enhance its monetization capabilities and reinforce its dominant position in the search market. Another factor that is seen as a positive for Alphabet is its delay in phasing out third-party cookies, enabling it to develop and test new privacy solutions that could maintain ad effectiveness.
Overall, GOOGL ranks 3rd on our list of must-watch AI stocks dominating headline. While we acknowledge the potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GOOGL but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.
